Business

Razon to spend up to P20 B for Wawa

MANILA, Philippines — The Enrique Razon-led joint venture that is planning to develop the Wawa Bulk Water supply project plans to invest up to P20 billion to develop the big-ticket water source.

The project plans to utilize the Wawa catchment area in Rizal province as a source of more than 500 million liters of potable water per day.

Razon’s Prime Infra and the Violago family’s San Lorenzo Ruiz Builders and Developers have teamed up to develop the project.

Discussions are now ongoing between Prime Infra and Ayala-led Manila Water, which will be the off-taker.

“We’re proposing to develop the Wawa Bulk Water Supply. Manila Water will be the off taker,” Razon said.

Asked how much would be the cost of the project, he said it would be around P15 to P20 billion.

The water source is strategically located to serve the expansion areas of Manila Water’s east zone concession area.

The multi-billion peso project marks Razon’s foray into the water business.

He said with the water problem in Metro Manila, there is a need to develop new water reservoirs.

“It’s a good business because water is something that is going to be short in the future. When was Angat built? Obviously, the population is growing and Metro Manila is doubling in size,” Razon said.

The other option being proposed by some lawmakers, which is desalination, costs more than sourcing water from the reservoir, Razon said.

“The problem is we’re not building enough reservoirs to keep the water,” he said.

He said the proposed Wawa Bulk Water supply project is a long-term solution to solve the current water shortage.

Discussions among state-owned Metropolitan Waterworks and Sewerage System and Manila Water are now ongoing to start the project soon.

Proponents believe that the proximity and water source quality of the Wawa catchment area would allow them to deliver first water no later than 2022.

Furthermore, with the scale and life-cycle cost of large dams, the public can be assured that they would be able to supply water in a cost-effective manner.

The lack of water source for Metro Manila has been put on the spotlight following a water shortage in the east zone concession area which started last month.

Manila Water, the east zone concessionaire has taken blame for the problem even as it underscored the need for new water sources in Metro Manila to augment Angat Dam, the main water source in the national capital region.